Advertising agency service classification clarified; canvassing on commission treated as business auxiliary service, not advertising agency service. Classification of services under section 65(105)(e) covers services by an advertising agency relating to advertisement; the recipient definition changed to any person w.e.f. 16-5-2008. Circular No. 96/7/2007, which supersedes prior technical circulars, clarifies that mere canvassing of advertisements for publishing on commission does not fall under advertising agency service but is taxable as business auxiliary service under section 65(105)(zzb).
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Advertising agency service classification clarified; canvassing on commission treated as business auxiliary service, not advertising agency service.
Classification of services under section 65(105)(e) covers services by an advertising agency relating to advertisement; the recipient definition changed to any person w.e.f. 16-5-2008. Circular No. 96/7/2007, which supersedes prior technical circulars, clarifies that mere canvassing of advertisements for publishing on commission does not fall under advertising agency service but is taxable as business auxiliary service under section 65(105)(zzb).
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